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Landscaping Maintenance Cost 18

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Most of the calculations are self-explanatory, with four exceptions. First, add a 10 percent risk factor because things don’t always go as planned. Second, the labor burden for a maintenance crew is usually a little lower than that for a construction crew. Third, the G&A overhead cost per man-hour for a maintenance crew is usually 30-50 percent lower than that for a construction crew. This is because construction work requires more management than maintenance work. Finally, in a normal market, a residential construction crew should add a 20 percent NPM (this is a 25 percent markup) to its BEP, while a maintenance crew usually operates at a 10 percent NPM.